How does the social contract solve the problem of reconciling the rights of the individual?

The social contract states that the sovereignty of the state lies with the citizens. This means that the government can only derive its power and authority based on the consent of the governed. This idea solves the problem of reconciling the rights of the individual, as the rights are not granted by the government, but instead lie with the governed, and the government is only responsible for protecting them, but not for granting them. Moreover, it means that al citizens have the same basic rights and that the government is not entitled to take them away without consent.